Salt Lake Telegram | 1932-06-01 | Page 13 | Mining, Financial, Commercial News

f i Mining Financial Commercial News BANKS PILE UP CREDIT RESERVE I I Committee for Promotion of oft t Credit Use Finds Sitt Situation Sit Sit- t Okeh ny By FRANK II McCONNELL Associated Press Financial Writer NEW YORK June Latest 1 available available available avail avail- able federal reserve figures indicate considerable preliminary progress in intensive in- in been made in the thC systems system's has credit effort to loosen up Member bank reserves nt- nt ing inc the reserves kept ept b by member banks with the 12 federal res reserve ne institutions in institutions in- in show a substantial in increase increaSe in In the past three months monUs They have crease more than recovered the loss suffered between the end o of June 1931 and the end o of February 1932 when they touched their low point I At the end of June 1931 they stood at sl They then declined I O to a total of ot at the end of Ot February Since then under the aegis of federal reserve reserve re- re serve efforts to thaw out credit channell channels chan chan- nell nels through buying government securities se member bank reserves have increased to a gain of While business has not drawn on the banks for any important amount o of credit in recent weeks these figures figures figures fig fig- ures indicate that credit funds arc piling up rapidly to provide for such calLs alls when they come Leading industrialists and bankers in New York who arc are meeting un under under under un- un der the chairmanship of Owen D. D Young in an effort to bring potential borrowers and lenders together express express ex ex- press satisfaction with the present bank position In keeping with Its aim to 10 say little lit lil littie tie tic but do much the committee o of 12 is maintaining strict secrecy about Its sessions but it was learned that the senates senate's action yesterday esterday in taking tak tak- ing lag direct steps toward balancing the budget was distinctly encouraging to the membership Majority opinion among New York financial leaders has definitely fa favored fa- fa a- a ored the thc manufacturers manufacturers' sales tax but the senates senate's action even action even though it scrapped the sales tax suggestion was was construed as ns encouraging because because be be- cause it specifically outlined sources fro from which new revenues might be obtained